MSE Pregnancy Club 24

Gillyx

I think it's gross, but don't quote me on that x

moneypuddle

sexymouse wrote: »

That amount is for statutory maternity allowance rather than maternity pay moneypuddle. Maternity allowance is tax and national insurance free, and is based on that maximum amount or 90% of your average earnings over a 13 weeks period (whichever is lowest). You can only get SMA if you're not entitled to SMP. SMP is based on 90% of your average earnings over an 8week period before your qualifying week. As far as I'm aware, SMP is taxed and you pay NI too. It's really complicated.

Hmm, but on the link posted it definitely says that £135 is SMP:

Statutory maternity pay

You are probably entitled to the following Statutory Maternity Pay:

• 90 per cent of your average weekly earnings for the first 6 full weeks of your Ordinary Maternity leave.
  Based on the information you provided, this will be £456.3 a week for 6 full weeks.
• £135.45 a week, or 90 per cent of your average weekly earnings (whichever is lower) for a further 33 weeks.
  Based on the information you provided, this will be £135.45 a week for 33 weeks.

MrsExcited

moneypuddle wrote: »

One more question - the SMP of £135/week - is this gross or net?

good question. And whoever has the answer please clarify the difference between gross and net as I alway get them mixed up.

savageHK

Looks like it: from HMRC:
Statutory Maternity Pay: an overview

If your employee is expecting a baby, she may be entitled to Statutory Maternity Pay (SMP). This replaces her normal earnings to help her take time off around the time of the birth. She also has a statutory right to a minimum amount of maternity leave.
Whether you have to pay SMP to an expectant employee depends on how long they've worked for you and how much they earn. They'll have to provide you with evidence of when the baby's due and give you notice of when they want you to start paying their SMP.
Payments of SMP count as earnings. You must deduct tax and National Insurance contributions (NICs) from them in the usual way.
You'll normally be able to recover some or all of the SMP you pay.

moneypuddle

MrsExcited wrote: »

good question. And whoever has the answer please clarify the difference between gross and net as I alway get them mixed up.

Gross = before tax
Net = after tax

But I still dont know which of the two it is

savageHK

... and
Is SMP subject to tax and NICs (National Insurance contributions)?

Yes. SMP is regarded as earnings for PAYE (Pay As You Earn) and NICs. But it may be that the earnings will not be high enough to attract payment of NICs and may also produce a tax rebate.

moneypuddle

Also for the first 6 weeks, where you get 90% of your normal income, does this include any bonus you might normally get, or would it just be based on your basic salary?

ikkle87

moneypuddle wrote: »

Gross = before tax
Net = after tax

But I still dont know which of the two it is

Its before tax hun. You get the £135 a week but can still be taxed on it.

savageHK

I think it's based on your actual weekly/monthly earnings just before you go off on leave, so it depends how your bonus is paid?

ikkle87

moneypuddle wrote: »

Also for the first 6 weeks, where you get 90% of your normal income, does this include any bonus you might normally get, or would it just be based on your basic salary?

From what I've read and been told by HR etc it will be based on your wage for the week including 22nd June. Any annual bonus should be paid on top of your maternity pay.